in Air Transport

Chingosho warns of the threats to the LCC market in Africa

Posted 4 June 2013 · 1 Comment

As auditors question the viability of LCC Fastjet, African Airlines Association secretary general Elijah Chingosho has warned that the low-cost airline sector in Africa faces fundamental issues that threaten to block access to cheap flights for much of the continent's population.

 


Speaking at the IATA annual general meeting in Cape Town, Chingosho warned that taxes and fuel cost will damage the entire viability of the LCC model.
"Africa is a huge continent but also the poorest and the surface infrastructure is poor, so there is a need for low-cost carriers,” Chingosho said.  "The cost of doing business in Africa is a major problem because governments levy very high taxes on airlines and on fuel and there is still a limited penetration of credit cards and internet use in Africa."
There is also a lack of secondary airports which means the model that has worked in Europe is not able to be replicated in Africa. “Very few major cities have secondary airports, and where they do have they are very inconvenient and the charges are very similar to main airports," Chingosho said.
Exorbitant fuel charges are still at the heart of the problem Chingosho said. “For airlines in most regions of the world, the cost of fuel is typically around 30-35% of operating costs, but in Africa it is 45-55%. We are working to persuade governments and oil companies to reduce costs with some success, but more needs to be done,” he said

 

1 Comment for Chingosho warns of the threats to the LCC market in Africa

Kibuti

posted 4 years ago

Limited networks not to mention arising from limited open skies agreements and Legacy carrier protectionist hogging of traffic rights.

* required field

Post a comment

Other Stories
Advertisement
Latest News

New Copperbelt airport set to shine

Zambia Airports Corporation Limited (ZACL) has begun construction of the $397 million Copperbelt International Airport. Humphrey Nkonde reports.

Jet MS approved by Nigerian authorities

Jet Maintenance Solutions (Jet MS) has recently announced being recognized by Nigerian Civil Aviation Authority.

Dubai Airshow: Air Sénégal orders two A330neo

Air Sénégal, the national carrier of Senegal has signed a Memorandum of Understanding (MoU) for two A330neo aircraft, which is the new re-engined version of the A330 widebody airliner.

Dubai Airshow: EgyptAir signs with Bombardier for up to 24 CS300s

Bombardier Commercial Aircraft announced yesterday at the Dubai Airshow, that it has signed a letter of intent (LoI) for up to 24 CS300 aircraft with EgyptAir Holding Company, of Cairo.

AFRAA: Safety, Connectivity, Blocked Funds, ATM & Human Capital Top Agenda for Africa

IATA highlighted five priorities which must be addressed for aviation to deliver maximum economic and social benefits in Africa.

Embraer introduces Best-in-Class 5,800-feet Cabin Altitude on Legacy

Embraer has announced the enhancement of the flight experience aboard its Legacy 450 and Legacy 500 mid-cabin business jets. The cabin altitude of these two revolutionary aircraft is already considered among the lowest on the market,

Aviation Africa SK18418
See us at
AfBAC Expo BT2017Aviation Africa BT18418Global Aerospace BT28218